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Solana price set to turn from suburban to a bullet train

  • Solana price sees a bounce off the $95 handle.
  • SOL price lifted by massive bullish inflow that could be enough to break away from the 55-day SMA.
  • Once the dollar backs off a bit, expect to see an exponential move higher to $145, bearing 45% gains.

Solana (SOL) price sees the $95-handle being well defended by bulls for the fourth time. The zone between $95 and $85 remains unchartered territory for April and shows the force of bulls willing to start an uptrend. Once bulls can break above the 55-day Simple Moving Average (SMA) at $101, expect to see a quick move towards $130, and if the dollar weakens a bit, even an overshoot to $145.

SOL price is on the cusp of booking 45% gains

Solana price has been rejected by the monthly pivot at around $110 on the 20th and the 21st of April. Since then, the price has been moving lower and looking for support at the $95-handle. That handle holds importance as it is the gatekeeper refraining bears from opening up levels to the downside that could lead to as low as $85.

SOL price is thus yet again being saved by bulls defending that level, and there is upside on the horizon as bulls are brewing an attempt to break above the 55-day SMA. Once that happens, expect to see a slow grind higher that will have the makings of a suburban train that constantly stops in its tracks, turning into a fast-moving bullet train that will lift bulls quickly higher and see their gains quickly mounting with only the first stop at $120, before jumping towards $130 and $145. It will be vital for bulls to be part of the price action before the Solana train leaves.

SOL/USD daily chart

SOL/USD daily chart

Alternatively, a possible rejection from the 55-day SMA, which bulls have been unable to push and close prices above for over the past four trading days, could trigger another drop to the downside. With the Relative Strength Index (RSI) below 50, bears still have enough room to manoeuvre lower, setting up the perfect strategy to break below that $95-handle and open up the can of another 10% losses, to $85. Should that level not hold, possibly the $75-level will come into play which is known from the bearish triangle formed throughout February and March.

Author

Filip Lagaart

Filip Lagaart is a former sales/trader with over 15 years of financial markets expertise under its belt.

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